2. All of the following are types of deductible provisions associated with major medical policies EXCEPT

A. corridor
B. integrated
C. flatD. stop-loss

D. stop-loss

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3. Which of the following statements about deductible provisions in medical insurance policies is NOTcorrect?

a. They help to eliminate small claims. b. They provide that initial expenses up to a specified amount are to be paid by the insured.
c. They are most common in basic medical expense policies.
d. They help to hold down premium rates.

c. They are most common in basic medical expense policies.

4. When a medical expense policy pays benefits on a fixed-rate basis, it pays

A. only for surgery and miscellaneous hospital expensesB. a flat amount per day for hospital room and board
C. certain percentage of whatever the hospital room Charges are
D. for total hospital expenses, less a deductible

B. a flat amount per day for hospital room and board

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5. If the coinsurance feature in a major medical insurance policy is 75/25 with a $100 deductible, how much of a $2,100 bill would the insured pay?

A. $100
B. $500C. $600
D. $1,500

C. $600

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6. Which of the following examples pertaining to major medical policy deductibles is CORRECT?

A. Valerie incurs a hospital bill of $8,300. Her basic medical expense insurance pays $2400. Valerie pays a $200 deductible and her major medical plan takes care of the balance of covered expenses. Her deductible would be classified as a corridor deductible.
B. Eric's major medical policy has a $500 flat deductible provision. He incurs covered expenses totaling $350. He will pay nothing and his major medical expense policy will pay $350.
C. Sarah has a major medical expense policy with a $500 flat deductible and an 80/20 coinsurance provision. Her covered expenses total $1,800. Of that amount, she will pay $500 and her insurance will pay $1,300.
D. An integrated deductible amount is $2,000. With this deductible, after the basic policy benefits are exhausted, the insured pays the full $2,000 deductible and then the major medical expense benefits are payable.

A. Valerie incurs a hospital bill of $8,300. Her basic medical expense insurance pays $2400. Valerie pays a $200 deductible and her major medical plan takes care of the balance of covered expenses. Her deductible would be classified as a corridor deductible.

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7. Wilbur's basic medical expense policy limits the miscellaneous expense benefit to 20 times the $90 daily room and board benefit. During his recent hospital stay, miscellaneous expenses totaled $2,100. How much, if any, of this amount will Wilbur have to pay?

A. $210
B. $2,100
C. $0D. $300

D. $300

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8. Clarence is to enter the hospital for a thyroidectomy. His basic medical expense policy includes a relative value schedule for surgical expense. The schedule lists 55 units for a thyroidectomy and a conversion factor of $8. How much will the policy pay?

A. $540
B. $400C. $440
D. $550

C. $440

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9. Arthur incurs total hospital expenses of $9,500, all of which are covered by his major medical policy. The policy includes a $500 deductible and a 75/25 coinsurance feature. Of the total expense, how much will Arthur have to pay?

A. $6,675
B. $2,875
C. $2,375D. $2,750

D. $2,750

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10. An insured has a basic hospital/surgical expense policy, which provides benefits of $50 per day for upto 30 days of hospitalization and $750 for miscellaneous charges. It bases its surgical benefits on aschedule approach. The insured is hospitalized for a severely broken leg that requires surgery. The surgicalprocedure has been assigned $500 by the policy, though the customary charge in the area is $600. The insured incurs the following covered expenses: $80 per day for seven days hospital charge $675 for the surgical procedure $800 for miscellaneous expenses The insured's policy will pay